Key points:
Traditional Chinese Medicine II rose 0.72% last week, and all sub sectors of Medicine showed a rebound trend
Last week, pharmaceutical biology closed at 11200.58 points, up 2.41%; Traditional Chinese Medicine II closed at 8500.18 points, up 0.72%; Chemical pharmaceuticals closed at 12334.54 points, up 1.29%; Biological products closed at 12107.91 points, up 1.13%; Pharmaceutical business closed at 6539.02 points, up 0.14%; Medical devices closed at 10235.14 points, up 7.71%; Medical services closed at 10752.21 points, up 1.78%. All sub sectors of Medicine showed a rebound trend.
From the performance of Companies in the traditional Chinese medicine sector, the top companies are: Hunan Hansen Pharmaceutical Co.Ltd(002412) , Jinghua Pharmaceutical Group Co.Ltd(002349) , Kunming Longjin Pharmaceutical Co.Ltd(002750) , Ji Yao Holding Group Co.Ltd(300108) , Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317) ; Companies with low performance include: Guangyuyuan Chinese Herbal Medicine Co.Ltd(600771) , Dong-E-E-Jiao Co.Ltd(000423) , Henan Lingrui Pharmaceutical Co.Ltd(600285) , Chongqing Taiji Industry (Group) Co.Ltd(600129) , Jiuzhitang Co.Ltd(000989) .
Traditional Chinese medicine PE (TTM) increased by 0.23x month on month, and Pb (LF) increased by 0.02x month on month
Last week, the PE of traditional Chinese medicine sector was 37.49x, the maximum value of PE in recent year was 39.7x, and the minimum value was 28.78x; The current Pb is 3.44x, the maximum value of Pb in recent years is 3.56x, and the minimum value is 2.57x. PE in traditional Chinese medicine sector increased by 0.23x and Pb by 0.02x, which is higher than the median level in recent one year. The premium rate of traditional Chinese medicine sector relative to Shanghai and Shenzhen 300 was 177.56%.
The price of traditional Chinese medicine continues to rise slightly, and the market is still stable
Last week, the total price index of key tracked traditional Chinese medicine was 209.14 points, up 0.2 percentage points month on month. In terms of varieties, the twelve categories showed eight increases, three decreases and one leveling year-on-year, and the price index of mineral medicinal materials continued to rise first. In the near future, the market of traditional Chinese medicine is still relatively stable. With the approaching of the Spring Festival, the consumption of spices is rising, and the transactions of warm tonic and medicine and food are increasing. In the later stage, the price is expected to continue to rise slightly.
Brand building of traditional Chinese medicine and adding favorable policies to “going to sea”
One belt, one road, one belt, one road, was launched by the State Administration of traditional Chinese medicine and the office of the leading group of the “one belt and one road” construction project. The joint development of the “one belt and one way” development plan (2021-2025 years) was carried out. The plan put forward one belt, one road and one country, to build 30 overseas centers of high quality Chinese medicine in the “14th Five-Year” period. It promulgated 30 international standards for Chinese medicine, and made 10 overseas brand projects of Chinese medicine culture. 50 international cooperation bases for Chinese medicine and a number of export bases for Chinese medicine services were established, and the construction of overseas registration service platform for Chinese medicine products was strengthened. Chinese medicine foreign aid medical teams are organized to encourage social forces to explore the construction of Sino foreign friendly Chinese medicine hospitals in a market-oriented manner. The plan specifies that deepening scientific and technological innovation cooperation, deepening international trade cooperation, and forming favorable policies for brand building of traditional Chinese medicine and “going to sea”.
It can be seen that the favorable policies of the traditional Chinese medicine industry are still being released. We believe that policy support is the biggest catalyst for the development of traditional Chinese medicine industry in 2022. On the demand side, the rigid demand characteristics of the pharmaceutical industry and the upgrading of pharmaceutical consumption jointly support the steady growth of the demand of the traditional Chinese medicine industry. On the policy side, a series of favorable policies have been formed to promote the innovation of traditional Chinese medicine, the development of formula particles, the support of medical insurance and payment policies, and the continued addition of traditional Chinese medicine decoction pieces can not exceed 25%, bringing policy dividends and new demand to the traditional Chinese Medicine industry. The unique advantage of “preventing disease” brings development opportunities to the traditional Chinese medicine industry. On the performance side, the traditional Chinese medicine industry walked out of the low point and showed a marginal improvement trend. On the valuation side, the traditional Chinese medicine industry still has certain valuation advantages after valuation repair. “Policy + pharmaceutical consumption upgrading + performance improvement + valuation advantage” jointly constructs investment opportunities for the traditional Chinese medicine industry. It is suggested to pay attention to the areas of policy encouragement and policy haven.
(1) pay attention to the innovation of modern traditional Chinese medicine, and pay attention to the innovation targets of modern traditional Chinese medicine with strong R & D strength and layout of large categories (large market: cardio cerebrovascular + fast growth: pediatric medicine);
(2) pay attention to the advantages of brand traditional Chinese medicine, formula and raw materials, and jointly build a moat of brand traditional Chinese medicine;
(3) benefit from consumption upgrading and pay attention to the subject matter of industrial chain extension and strong brand advantage.
Risk tips
(1) stricter industrial policies; (2) Industry and listed company performance fluctuation risk.
